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The Final Leg of An Ambitious Project: Who decides? : resolving Cross-Border Failed Banks in the European Union Analysis of the Establishment of the Single Resolution Mechanism (SRM) through a Neofunctionalist and Liberal Intergovernmentalist Lens

Rios Camacho, Elena (2014) The Final Leg of An Ambitious Project: Who decides? : resolving Cross-Border Failed Banks in the European Union Analysis of the Establishment of the Single Resolution Mechanism (SRM) through a Neofunctionalist and Liberal Intergovernmentalist Lens.

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Abstract:The present study examines the establishment of the final element of the ambitious European Banking Union project, i.e. the Single Resolution Mechanism (SRM), through the lens of two European Integration theories: Neofunctionalism (NF) and Liberal intergovernmentalism (LI). The research question was: “Why is there such a great gap between demand for and supply of a SRM with a centralized Resolution Authority and a Single Bank Resolution Fund (SBRF) at EU level and how can NF and LI explain the establishment of this crucial element of banking Union?” To answer it, a single case study and a congruence analysis were carried out. The qualitative research method of “content analysis” was adopted for data collection and analysis. Lastly, regarding the main findings, even though NF is successful at supplying part of the SRM, i.e. regulation with bail-in principle, the theory most successful at explaining the supply of regulation seems to be LI since the institutional set-up for the SRM was supplied by a process of interstate bargaining in which the most powerful states like Germany and other countries of the Northern coalition managed to upload their preferences. The integration process was blocked by certain MSs who had a high degree of relative bargaining power based on their power resources, i.e. ability to pay both for their banks and into a common fund, as well as on their intensity of preferences. Supranational actors and other non-state actors did not supply the institutional set-up for the SRM. Power politics is the answer for the research question.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:70 social sciences in general, 88 social and public administration, 89 political science
Programme:European Studies MSc (69303)
Link to this item:http://purl.utwente.nl/essays/65669
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